Brazil to formally enshrine central bank’s autonomy

Brazil’s government is formulating a constitutional amendment that would for the first time formally enshrine the autonomy of the central bank, the institution’s new chief says.

The law would give the central bank licence to use whatever instruments it considered necessary to meet its objectives, which include financial stability and meeting an inflation target set in consultation with the government.

“There is a [bill] that will say explicitly that the central bank is autonomous: we call it operational autonomy,” Ilan Goldfajn, who became its chief last month, said.